A woman arranges to repay a $1,000 bank loan in 10 equal annualpayments at a...

A woman arranges to repay a $1,000 bank loan in 10 equal annual payments at a 10% effective annual interest rate starting in the sixth year.

a. What is the amount of annual payment?

b. If the woman paid the amount calculated in an on the 5th and 6th year, but failed to pay for the obligations on the 8 th and 9 th year, how much does he need to pay every year in addition to the annual payment to compensate for the unpaid amount?

Expert Solution

Answer A

Answer b

jeff jeffy answered 2 years ago

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